Pictured is Pennsylvania Gov. Josh Shapiro announcing his budget proposal on Tuesday.

Gov. Josh Shapiro presented his 2026-27 budget proposal to the General Assembly and the people of Pennsylvania — building on three years of historic progress by continuing to do what’s working across the Commonwealth to lower costs, create economic growth, strengthen public safety, support students, and continue Pennsylvania’s rise. The Governor’s budget proposal maintains fiscal responsibility, continues to cut taxes, and ensures taxpayer dollars are spent wisely.

“From day one, my Administration has been laser-focused on delivering results for the people of Pennsylvania — and what we’re doing is working,” said Shapiro. “By listening to Pennsylvanians and working together, we’re solving problems and proving that government can be a force for good in people’s lives. This budget builds on the progress we’ve made by making smart, responsible investments that strengthen our schools, keep communities safe, and grow our economy. At a time when dysfunction and division seem to dominate elsewhere, here in Pennsylvania we’ve shown that we can still work together to get stuff done and build on what’s working — because Pennsylvania is on the rise.”

Since taking office, Shapiro has made historic investments in education, strengthened public safety, raised wages for workers who care for Pennsylvania’s most vulnerable neighbors, and driven economic development that has created over 21,500 good-paying jobs and attracted more than $39 billion in private-sector investment across the Commonwealth. Under his leadership, Pennsylvania has increased education funding by nearly 30 percent, kept unemployment below the national average for 31 straight months, and become the only state in the Northeast with a growing economy. The Governor has cut taxes seven times — delivering relief for seniors, families, and small businesses — while making Pennsylvania more competitive and affordable.

At the same time, the Shapiro Administration has strengthened public safety by putting securing funding for nearly 2,000 additional police officers on the beat and expanding afterschool and community-based violence intervention programs. These efforts are delivering results — violent crime is down 12 percent statewide and fatal gun violence has dropped 42 percent, helping communities across Pennsylvania feel safer and more secure.

This progress has been anchored by a strong commitment to fiscal responsibility. Through the first seven months of the current fiscal year, Pennsylvania has collected $417 million above revenue projections — reflecting an economy that is growing as a result of strategic investments made by the Shapiro Administration. This budget is balanced, does not raise taxes, and does not rely on any broad-based tax increase over the next five years, ensuring long-term stability while continuing to deliver results for the people of the Commonwealth.

Under Shapiro’s leadership, the Commonwealth has earned two credit rating upgrades — saving taxpayers more than $200 million in borrowing costs — with benefits that extend to school districts and local governments that can now borrow at lower rates. By protecting the Rainy Day Fund, maintaining a balanced budget, and making smart, forward-looking investments, the Shapiro Administration is strengthening Pennsylvania’s financial foundation while continuing to deliver results for the people of the Commonwealth.

Part of that work also requires modernizing Pennsylvania’s revenue structure. The Governor’s budget proposal notes that regulating skill games and legalizing adult-use cannabis together could generate approximately $2 billion annually, providing long-term, recurring revenue to support schools, public safety, and taxpayer relief.

“This budget builds on real progress by staying focused on the people we serve,” said Lieutenant Governor Austin Davis. “I’ve had the privilege of meeting Pennsylvanians who are making their communities safer, teaching our youngest learners, and fighting for victims’ voices to be heard. This budget has their back — investing in afterschool programs, community organizations addressing gun violence, early childhood education and child care, and support for victims of crime. These investments will give every Pennsylvanian the tools to succeed today and build a stronger future.”

As the Governor begins his fourth year in office, the 2026-27 budget proposal builds on that momentum — continuing to invest in proven strategies, putting the people of Pennsylvania first, and positioning the Commonwealth for long-term growth.

Despite an optimistic tone from the administration, others voiced worries calling it a campaign-style speech that does not address needs of Pennsylvanians.

“Governor Shapiro’s budget proposal is exactly what you’d expect given his record — reckless, unaffordable spending dedicated to partisan, special interests,” said Commonwealth Foundation President and CEO Andrew Lewis in a statement. “Rather than addressing crucial policy changes to make Pennsylvania more competitive, students more successful, and energy more affordable, Gov. Josh Shapiro has chosen instead to threaten a tax increase and raid the state’s Rainy Day Fund to pay for mass transit bailouts and bloated bureaucracies.

“Pennsylvania cannot afford another irresponsible budget from Governor Shapiro, and they certainly can’t afford the costly tax hikes that come with it.”

Nathan Benefield, Chief Policy Officer for the Commonwealth Foundation, said the proposals worsens the deficit and threatens tax hikes.

“His proposal is unaffordable in every sense of the word — not only does he severely inflate revenue projections, but he proposes illegally tapping the state’s Rainy Day Fund to cover a $6.5 billion gap in spending and revenue. …

“If Governor Shapiro spent more time in Pennsylvania, he’d understand that Pennsylvanians want affordable, reliable energy, lower taxes, and transformative school choice, not another year of deficit spending and looming tax hikes.”